If I were Norgon, I'd lower the price to be at least somewhat competitive with the clones. Military contract is great but it can be such a fickle beast, civilian market is steady.
Distributor price of the Ambi-Catch is more than the MSRP of the clones. Norgon was not the only game in town, there is Troy, KAC, High Velocity Arms to name a few, nor was it necessarily the universal favorite. Its high price did prevent many users from buying one, the clones might appear to be good alternatives, but as someone that holds a few patents, I'd never buy a clone, even if it's legally acceptable for these companies to make them now.
Quality is unknown. It's not been that long, have you guys forgotten AU was the one that copied the AXTS / Rainier Arms Raptors and got sued for it.
As to whether it's $50 better, I think the Norgon Ambi-Catch is overpriced. Intellectual property has value, initial investment for the casting or forging dies costs a great deal of money. I can only speculate the cost of initial investment was paid for long ago, in any case, the extra cost in anything isn't linear.